Cyber Insurance Becomes Essential Amid Rising Digital Threats

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The recent cyberattack on Fortnum Private Wealth, accompanied by ASIC's legal action, has spotlighted the critical risks cyber threats pose to financial advice companies in Australia.

With digital integration intensifying across the finance sector, the owner of Fortnum, Entireti, plans to defend the case, underscoring the necessity for ongoing vigilance in cybersecurity measures.

Fraser Jack from Cyber Collective emphasises that cyber insurance has become indispensable for businesses. With regulatory requirements mandating recovery capabilities post-cyber incidents, advice practices face expenses they often cannot anticipate or manage without insurance. Cyber events can incur hefty legal bills, demanding extensive forensic IT and accounting work, not to mention significant financial losses caused by deceptive acts such as misdirected transactions or errors involving super fund rollovers.

The average cyber intruder remains undetected in a system for over 200 days, making timely insurance coverage crucial to subsidising response and recovery efforts after an attack is identified. However, Jack advises that while insurance offers vital protection, it should not be the sole defence mechanism. Businesses need a comprehensive approach starting with robust internal controls, adherence to compliance protocols, and extensive training to diminish human error risks, which are responsible for nearly all breaches.

Financial adviser Jenny Brown of JBS Financial Strategists stresses the importance of cyber protection, lamenting the hefty repercussions on reputation and finances should a breach occur. For her, spending a modest insurance premium is a prudent measure given the extensive use of online tools and the potential for significant repercussions without it. Brown highlights the need to review what cyber policies cover, especially in conjunction with management liability and professional indemnity insurance, to ensure no areas are left unprotected.

The necessity for robust cybersecurity strategies was amplified for JBS Financial Strategists during Melbourne's COVID-19 lockdowns as the firm transitioned to 100% remote work. The firm's reliance on technology and the internet required rigorous security protocols, including monthly staff training and stringent system access restrictions, to safeguard against phishing scams and other vulnerabilities.

Brown underscores that while measures like cyber insurance and ongoing training offer a level of security comfort, complacency is dangerous. Regular practice and awareness-building among employees bolster protection for the business and its clientele against inevitable cyber threats.

Businesses must take proactive steps now. Fortifying cyber defences through insurance, stringent controls, compliance diligence, and continuous staff education can curtail potential damages and safeguard against emerging cyber threats in this increasingly digital world.

Published:Friday, 12th Sep 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Why insurer technology resilience matters when you need to claim

14 Jul 2026: Paige Estritori

A new regulatory focus on insurer operational resilience is a timely reminder that an income insurance policy is only as reassuring as the systems behind it. The Financial Markets Authority review, reported by Insurance Business in July 2026, found that many New Zealand insurers are still relying on ageing technology for core operations, while also managing significant outsourcing and cyber-security pressures. - read more

Why Delayed Life Milestones Could Widen New Zealand’s Income Protection Gap

11 Jul 2026: Paige Estritori

New Zealand’s younger workers are reshaping the traditional path into insurance. Fresh industry reporting, drawing on Deloitte’s 2026 Gen Z and Millennial Survey and Financial Services Council research, points to a clear shift: many Gen Z and millennial New Zealanders are delaying major life decisions because of financial pressure. Home ownership, starting a family and career changes have long been moments when people reassess life, mortgage and income protection cover. - read more

Click for more Insurance News

Life Insurance Articles

How to Compare Income Insurance Quotes

As a working professional in New Zealand, protecting your income is crucial. An unforeseen event or illness can disrupt your financial stability, making income protection insurance an essential safety net. This type of insurance offers peace of mind by ensuring that you can meet your financial obligations if you're unable to work due to an illness or injury. - read more

How to Evaluate Income Insurance Providers

Income insurance may not be the first thing that comes to mind when considering personal finances, but its role in ensuring financial stability is crucial. By replacing a portion of your income if you’re unable to work due to illness or injury, income insurance provides a safety net that can help maintain your quality of life during challenging times. - read more

How an Income Insurance Advisor Can Save You Money and Stress

Income insurance, often referred to as income protection, is a financial safety net designed to provide you with a significant portion of your income if you're unable to work due to illness or injury. This insurance ensures that your essential expenses, such as mortgage repayments, utilities, and groceries, are covered during your recovery period. - read more

Demystifying Income Protection: What You Need to Know

Income protection insurance is a policy designed to replace a portion of your income if you're unable to work due to illness or injury. It acts as a financial safety net, ensuring that you can meet everyday expenses while focusing on recovery. - read more

Decoding Income Insurance: Key Terms Every Kiwi Should Know

Income insurance might not be the first thing that comes to mind when planning your finances, but it's one of the most crucial elements to consider. Picture this: you're managing well enough, budgeting your expenses with your regular paycheck, when suddenly an unexpected event like illness or injury prevents you from working. This is where income insurance becomes a financial lifesaver. - read more

Start Here !

Apply now for your free Income Insurance assessment and price comparisons!

All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase

Insurance Premium:
The periodic amount paid for the purchase of insurance.